Captive insurance is a form of self-insurance where a company (or a group of companies) creates its own insurance company to cover its risks. Captive insurance can be an attractive option for companies with unique risks or high insurance premiums. One of the main advantages of captive insurance is that it provides the company with more control over its insurance program. Captive insurance can also offer tax advantages, potential investment income, and the ability to tailor coverage to specific needs.

Advantages of Captive Insurance programs include:

• Members may receive underwriting profits and dividend returns
• Investment Income from unused premiums due to low losses accumulates to the benefit of the Members
• Members have more control over insurance costs and potentially insulate themselves from large premium swings
• Tailored coverages for Commercial Automobile, Workers Compensation, General Liability to meet an individual Members’ specific needs. 
• Members have increased access to extensive Claims Management, Loss Prevention, and Safety programs
• Members have significantly more say in how their individual claims are managed and litigated
• Members often experience a reduction in frequency and severity of claim outcomes